Renewable energy: US probe 'protectionism,' China says

Renewable energy flap with China escalates as US panel agrees to investigate complaints that Chinese solar panels are unfairly priced. Renewable energy is flash point in US-China trade relations.

ByAssociated PressDecember 3, 2011

In this photo taken last month, Chinese work on the production line at a solar panel factory of the Eoplly New Energy Technology Co., Ltd. in Nantong City in east China's Jiangsu Province. A federal trade panel voted Friday to investigate whether Chinese companies are harming the US solar panel industry by dumping low-price products on global markets. Renewable energy is an irritant in US-China relations.

BEIJING — China criticized a U.S. decision to investigate whether Chinese companies are harming the American solar panel industry, saying it was made without sufficient evidence and highlights a strong U.S. tendency for protectionism.

The U.S. International Trade Commission voted Friday to investigate a complaint by seven U.S. solar companies that Chinese competitors are selling solar products on global markets at unfairly low prices.

The vote does not impose any penalties but says there is reason to believe that Chinese imports harm or threaten to harm the U.S. solar panel industry.

China's Ministry of Commerce said in a statement late Saturday that the decision was made without sufficient evidence showing the U.S. industry had been harmed and did not take into account Chinese companies' arguments or opposition from U.S. industries and other affected groups.

"China is deeply concerned about the decision, which does not tally with facts and highlights the United States' strong tendency for trade protectionism," it said on its website.

The statement said China hopes the U.S. will objectively analyze why some U.S. solar panel companies lack competitiveness.

"The United States should avoid abusing trade remedies which will affect bilateral trade and mutually beneficial cooperation between China and U.S. enterprises in the new energy sector," it said.

The companies that filed the October complaint said massive subsidies by the Chinese government enable Chinese producers to drive out U.S. competition, and asked for tough trade penalties on Chinese solar imports.

The case has caused a split in the solar industry, with some U.S. companies saying imports of Chinese solar panels have lowered prices, helping consumers and promoting rapid growth of the industry.

Solar and other renewable energy technology has emerged as an irritant in U.S.-Chinese trade. The two governments have pledged to cooperate in development but accuse each other of violating free-trade pledges by subsidizing their own manufacturers.